Members of the Scottish Agroecology Partnership (SAP) have welcomed the Scottish Government’s announcement of £500,000 in capital funding for small producers in 2025/26. It has been recognised as a hard-won and important step towards recognising the role of small, agroecological farms, crofts and food businesses in Scotland’s food system, however it is a cautious welcome.

The Scottish Government Small Producers Pilot Fund – Capital Grants will support investment in small-scale infrastructure, equipment and facilities across Scotland, delivered by South of Scotland Enterprise (SOSE) and Highlands and Islands Enterprise (HIE). Funding is targeted at projects that boost innovation and productivity, strengthen local supply chains, support sustainable local food and drink production, and sustain jobs in rural communities.

SAP members say the decision shows that Ministers are beginning to act on years of evidence and advocacy from small producers and their allies. But they stress that, at just £500,000 nationwide, this must be seen as a pilot and a down-payment – not the destination.

“The Minister has been clear that ‘small producers matter’ for nature, climate, thriving communities and sustainable food,” said Tara Wight, Scottish Agroecology Partnership spokesperson. “This fund is a welcome recognition of that and a testament to the persistence of growers, crofters and landworkers who have kept this issue on the agenda. But if Scotland is serious about its Vision for Agriculture, this has to be the start of long-term, scaled-up support for small, diverse, agroecological producers right across the country.”

SAP is calling for:

• The Small Producers Pilot Fund to be extended and expanded in future years, with a clear pathway from “one-off pilot” to mainstream, recurring support within Scotland’s agricultural budget.
• Specific recognition of the needs of horticulture, mixed smallholdings and crofting, where small capital investments (such as tunnels, packhouses, chilled storage, washing and processing kit, or small abattoir/processing infrastructure) can unlock major gains in local, healthy food supply.
• Simple, accessible application processes designed around small and micro-businesses – including new entrants, crofts and community enterprises – so that the fund reaches the people it is intended to help.
• Closer alignment between capital grants and the wider farm support framework i.e. farm subsidies and grants that will be put in place post leaving the European Union’s Common Agricultural Policy system. So that public money rewards agroecology, local food systems and good rural jobs.

SAP members will be watching with interest and would welcome Ministers on the Rural Affairs and Islands Committee to visit some of Scotland’s real small producers and see how this type of grant can be a vital lifeline for rural businesses and communities, supporting the kind of ambitious change talked about. 

Quotes
Abi Mordin, small producer (Hidden Veg, Dumfries and Galloway) said: “At Hidden Veg, we’re committed to growing good food for our community, but the realities of being a small producer often mean working with limited tools and tight margins. The Small Producers Pilot Fund Capital Grant Scheme gives us a rare chance to invest in the infrastructure that would make a real difference to our day-to-day work - enabling us to keep providing fresh, sustainably grown veg for local people.”

Donna Smith, Scottish Crofting Federation said: “We welcome the capital funding made available for organisations based in the Highlands and Islands that work with groups of small food producers. It is a step in the right direction and something that SCF, along other organisations, has been campaigning for for a long time. We hope that this marks the start of wider efforts to genuinely transform our food system to create resilient local supply chains that enable crofters to produce and sell more food locally.”

David McKay, Soil Association Scotland and small producer (Auchmill Organics, Aberdeenshire) said: “It is very welcome to see support for small-scale agroecological and organic producers who are helping to meet Scottish Government policy objectives around good food, climate and nature. Access to small sums of capital funding can help overcome barriers to establishing a small-scale fruit and veg business, and often it is infrastructure such as polytunnels that get damaged during storms, which are becoming more frequent due to climate change.”

Notes to editors
The Scottish Government Small Producers Pilot Fund – Capital Grants provides £500,000 in 2025/26 to support small producers, with £175,000 for the HIE region and £325,000 for the SOSE-managed region, including the Scottish Enterprise area. Eligible applicants include businesses with fewer than 10 employees, turnover under £2 million and holdings of 30 hectares or less, as well as organisations directly supporting those producers.

The fund is delivered by South of Scotland Enterprise (SOSE) and Highlands and Islands Enterprise (HIE) on behalf of Scottish Ministers and covers all of Scotland.

The Scottish Agroecology Partnership (SAP) brings together organisations representing farmers, crofters, growers, landworkers, campaigners and researchers committed to an agroecological transition in Scotland. Member organisations include Food, Farming and Countryside Commission, Landworkers Alliance, Nature Friendly Farming Network, Nourish Scotland, Pasture for Life, Propagate, Scottish Crofting Federation and Soil Association Scotland. 

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Contact
Nim Kibbler
Nature Friendly Farming Network on behalf of SAP
nim.kibbler@nffn.org.uk | 07907392293